posted on Nov, 28 2008 @ 10:41 PM
Again, at the risk of being repetitious, how much difference to US GDP did the export loss make? The Trade Balance worsened by only -$0.2 billion, or
about -0.19% of our 1929 GDP, or less than 1/5th of 1% of 1929 GDP. Meanwhile, our total GDP
'd a whopping -46% (or $47.2 billion).
How much effect did a 1/5th of 1% loss of GDP have on the Great Depression, especially when spread over a 4-year period?
Again, where's all the "damage" that the Smoot-Hawley Tariff caused?? Was it was all in "off-balance sheet" accounts?
Based on available statistics, Smoot-Hawley had almost NO effect on the Great Depression. At the very most, caused a -3.8% decline in GDP from loss of
exports. But factoring in the GDP increase from a decline in imports, it caused less than 1% of the GDP decline.
The Smoot-Hawley Tariff did not cause the Great Depression, nor did it worsen it or extend it. Claims to the contrary are not only false, but easily
refutable. The evidence to disprove those claims is abundant, overwhelming, and freely available to the public. The available GDP numbers completely
exonerate the Smoot-Hawley Tariff from any contribution to the Great Depression.
The Smoot-Hawley myth needs to be put to rest, once and for all. The claim that it worsened the Great Depression is nothing but a fairy tale.
Economic Populist Forum
[edit on 28-11-2008 by unlawflcombatnt]